Obama: Iranian oil, good. Canadian oil, bad. American oil, bad.

Published 7:15 pm, Saturday, August 1, 2015

President Obama’s confusing approach to energy encourages our enemies who shout “death to America” as it penalizes our closest allies and even our own job creators.

Iran’s participation in the nuclear negotiations netted a deal that allows it to resume oil exports. International sanctions have, since 2011, cut Iran’s oil exports in half and severely damaged its economy. Iran currently has about 50 million barrels of oil in storage on 28 tankers at sea.

It is believed that it will take Iran months to bring its production back up to pre-sanction levels. The millions of barrels of oil parked offshore are indicative of their eagerness to increase exports. Once the sanctions disappear — if Congress approves the terms of the deal — Iran wants to be ready to move its oil.

On July 17, the Financial Times (FT) reported: “The departure of a giant Iranian supertanker from the flotilla of vessels storing oil off the country’s coast has triggered speculation Tehran is moving to ramp up its crude exports.” The Starla, “a 2 million barrel vessel,” set sail — moving the oil closer to customers in Asia.

Starla is the first vessel storing crude offshore to sail after the nuclear deal was reached — which is, according to the FT: “signaling its looming return to the oil market.” Analysts at Macquarie Capital apparently think the oil on Starla will not wait for sanctions to be lifted. A research note states: Iran is “likely assuming that either a small increase in exports will not undermine the historic accord reached or that no one will notice.”

Already, before sanctions are lifted, global oil prices are feeling the pressure of Iran’s increased exports. Since the deal has been announced, crude prices have lost almost all of the recent gains.

While the Obama Administration’s actions allow Iran to boost its economy by increasing its oil exports, the White House hurts our closest ally but putting delay after delay in front of the Keystone pipeline, which would help Canada export its oil.

After kicking the can down the road for years, the Keystone pipeline is no closer to construction than it was on the day the application was submitted. It is obvious President Obama doesn’t like the project. Back in February, he vetoed the bill Congress sent him that would have authorized construction, saying that it circumvented “longstanding and proven processes for determining whether or not building and operating a cross-border pipeline serves the national interest.”

There is no pending legislation on Keystone, but the permit application has still not been approved or rejected. I had hoped that the unions, who want the jobs Keystone would provide, would be able to pressure enough Democrats to support the project, to push a bill over the veto-proof line. But that didn’t happen. For months, Keystone has been silently dangling. But that may be about to change.

Reliable sources tell me that Obama is prepared to, finally, announce his decision on Keystone. He’ll conclude that it is not in the “national interest.” So helping our ally grow its economy and export its oil is not in our national interest but helping our sworn enemy do the same, is? It’s like the “Channeling Jeff Foxworthy” parody states: we just “might live in a country founded by geniuses and run by idiots.”

Speaking of economic growth and oil exports, what about here at home, in the good old U.S. of A.? Senator Lisa Murkowski (R-AK) questions the deal that allows Iran to export its oil, while we cannot: “As Congress begins its 60-day review of President Obama’s nuclear deal with Iran, there are plenty of reasons to be skeptical about whether it is in our nation’s — and the world’s — best interests. Not least among them are the underexplored, but potentially significant consequences the deal will hold for American energy producers.”

Most people don’t realize that the U.S. is the only advanced nation that generally prohibits oil exports. Due to policy born in a different energy era, American oil producers are prohibited from exporting crude oil because it was perceived to be in “short supply.” The U.S. is now the world’s largest producer of oil and gas.

Murkowski argues that it is time to lift the 40-year-old oil export ban. She’s introduced bipartisan legislation that would do just that, but, if he was so inclined, President Obama could reverse the policy himself — if he found it to be in the national interest. And how could it not be?

Allowing U.S. crude oil into the world market enhances global energy security, as it would be less impacted by tensions in the Middle East. Our allies in Europe and Asia would have access to supply from a friendly and reliable source — remember the Arab Oil Embargo crippled Japan’s economy. Lifting the oil export ban would allow U.S. crude to be sold at the true market price, not the discounted rate, which would help stem the job losses currently being felt throughout the oil patch due to the low price of oil and exacerbated by the drop in the price of crude triggered by the Iran deal.

So, the Obama Administration lobbies Congress to lift the sanctions on Iran, a country that views America as The Great Satan while constraining Canadian and American oil. How is that in the “national interest?”

It appears we might just be living in a country founded by geniuses and run by idiots.

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE).